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USDCAD Holding Higher Ahead Of Macklem

CANADA
  • USDCAD moves to a new session high of 1.2641 (+0.6%) after the earlier pop higher with USD firming against high beta currencies post-ECB.
  • It looks a broader USD/risk-off move but perhaps sees a small boost with the BoC FSR paying close attention to elevated mortgage debt and noting higher rates can exacerbate existing vulnerabilities. The Review note it was too early to tell whether the housing slowdown will deepen but further comments from Gov Macklem follow shortly at 1100ET.
  • The cross is seen to have a bearish outlook having cleared 1.2562 and touched a low of 1.2518 yesterday, but for now moves closer to resistance at 1.2686 (Jun 2 high) with the 20-day EMA of 1.2706 above it.

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